Check Before You Invest : MSTC Ltd

BSE: 542597 NSE: MSTCLTD ISIN: INE255X01014

| Sector: Retail | Industry: e-Commerce

Snapshot

Q.1 Which industry/sub-sector does MSTC Ltd belong to?

MSTC Ltd belongs to the Retail sector, operating specifically within the e-Commerce segment.

Q.2 Is MSTC Ltd a good quality company?

MSTC Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is MSTC Ltd undervalued or overvalued?

MSTC Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is MSTC Ltd a good buy now?

MSTC Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of MSTC Ltd?

MSTC Ltd revenue growth is -1.7% for FY-2025, which is above its 5-year CAGR of -17.84%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of MSTC Ltd?

MSTC Ltd Return on capital employed is 59.1% for FY-2025, which is above its 5-year historical median of 39.64%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of MSTC Ltd?

MSTC Ltd Return on Asset is 16.74%, which is above its 5-year historical median of 10.4%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of MSTC Ltd?

MSTC Ltd Return on equity is 56.9% for FY-2025, which is above its 5-year historical median of 45.16%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of MSTC Ltd?

MSTC Ltd Cash conversion cycle is -58 days, in line with its 5-year historical median of -58 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.13	0.15
ROE	56.9	45.16
ROCE	59.1	39.64
Cash Conversion Cycle	-58 days	-58 days

Q.6 Gross Profit margin of MSTC Ltd?

MSTC Ltd Gross profit margin which is the profit after deduction of direct costs, is 80.3% for FY-2025, which is in line with its 5-year median of 80.3%, indicating stable margins.

Q.7 Operating Profit Margin of MSTC Ltd?

MSTC Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 55.82% for FY-2025, which is above its 5-year median of 28.21% indicating increasing margins.

Q.8 Net Profit Margin of MSTC Ltd?

MSTC Ltd Net Profit Margin is 129.59% for FY-2025, is above with its 5-year median of 54.36%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	80.3	80.3
Operating Profit Margin	55.82	28.21
Net Profit Margin	129.59	54.36

Q.9 Debt to Equity ratio of MSTC Ltd?

MSTC Ltd Debt-to-Equity ratio is 0.19, which is in line with the industry average of 0.19, indicating similar to debt levels in the industry.

Q.10 Debt to cash flow from operations of MSTC Ltd?

MSTC Ltd Debt to cash flow from operations is 0.56, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of MSTC Ltd?

Promoters hold 64.75% of the MSTC Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of MSTC Ltd vs industry peers?

MSTC Ltd revenue CAGR is -17.84%, compared to the industry median CAGR of 14.96%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-1.7	15
Gross Profit Growth	-14.4	27.5
Operating Profit Growth	95.5	25.4
Net Profit Growth	134.3	40

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.13	0.5
ROE	56.9	10.08
ROCE	59.1	18.19
Cash Conversion Cycle (days)	-58.29	20

Valuation & price assessment

Q.1 Stock return of MSTC Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 10.96% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	11%	13.8%	-16.3%

Q.3 Valuation ratios of MSTC Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	14.35	13.30	31.95
Price to Book	3.39	4.88	5.00
Price to Sales	8.99	9.07	7.87
EV to EBITDA	7.43	9.33	18.73

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